Posted with permission from gironeslawyers.com
Several changes to the Ontario Accident Benefits regime in recent years have meant that you do need many of the optional benefits offered by your car insurance company. Because these optional increases cost more money, many people opt not to purchase them. Unfortunately, it is only after they are injured in a car accident that people realize why the optional benefits are important.
Let’s first look at Income Replacement Benefits. If you do not purchase this additional coverage, your benefits – should you be injured and unable to work – will be 70% of your gross income to a maximum of $400/week. That’s only $20,800.00 per year. If you do not have any disability insurance, either privately or through work, then you should opt to increase these payments.
You don’t want to be overinsured either. If you have good disability insurance, you will not need to buy additional income replacement benefits. Income replacement benefits are net of disability benefits so you only get one benefit or the other, not both.
If you are self-employed and run a lot of expenses through your business to reduce your income, do not purchase optional benefits. Consider a good long term disability policy instead.
There are also optional benefits for housekeeping help and attendant care. These are very important if you do not work outside the home and care for dependants. Please review these options with your insurance company/broker prior to finalizing your automobile policy this year.
